Production of 401,858 silver-equivalent ounces during the quarter
(902,887 silver-equivalent ounces to June 30, 2013) from the 100%-owned
and royalty-free La Platosa Mine in Durango, Mexico

Net loss of $5.0 million during the quarter, primarily attributable to
non-production costs associated with the significant decline in silver
prices, including:

$3 million in negative revenue adjustments relating to declines in metal
prices affecting final payment for concentrates

$1.2 million in unrealized losses on marketable securities representing
an interest in 134,732 ounces of silver

$1 million of drilling expenses incurred early in the period

July 2013 production demonstrating benefits of second quarter
development, with ore grades of almost 900 g/t silver and improved
production tonnage during the third quarter to date

Net cash costs per silver ounce during the quarter of $12.07 ($9.60 to
June 30, 2013)

Cash, marketable securities and accounts receivable total approximately
$5.8 million as of August 14, 2013

"We made progress at La Platosa during the first half of 2013, albeit in
a difficult silver-price environment," stated Brendan Cahill, President
and Chief Executive Officer. "The development work conducted during the
second quarter is showing positive results, with ore milled during July
grading 895 g/t silver as we accessed high-grade ore in the Guadalupe
South Manto. We are now accessing high-grade ore from the 6A and 6B
mantos and plan to open new faces in the 623 Manto during the coming
months. Further mine optimization that commenced early in the third
quarter should improve our profitability and decrease our cash costs
per ounce going forward."

Mr. Cahill continued, "The significant drop in silver prices during the
second quarter affected our revenues and profitability, particularly as
the final settlement of concentrate deliveries made at higher silver
prices during earlier periods required negative revenue adjustments
totaling $3 million. These adjustments will lessen or be reversed as
the silver price stabilizes or increases, which should greatly improve
profitability during the remainder of the year. Our near-term goal is
profitable operation even in the current depressed silver price
environment."

Financial and Operating Highlights

Financial results for the three and six month periods ended June 30,
2013 and 2012 are as follows:

3 monthsendedJune 30,

3 monthsendedJune 30,

6 monthsendedJune 30,

6 monthsendedJune 30,

2013

2012

2013

2012

$

$

$

$

Revenue

4,187 (1)

13,994

14,242

27,100

Cost of sales

(6,003)

(5,377)

(11,966)

(10,218)

Gross profit

(1,816)

8,617

2,276

16,882

Expenses:

Corporate administration

(1,547)

(2,294)

(3,330)

(4,098)

Exploration

(1,368)

(2,498)

(6,207)

(4,578)

Other (incl. finance cost)

(1,789)

(2,542)

304

(338)

Income tax

1,485

(805)

1,321

(1,770)

Net income (loss) for the period

(5,035)

478

(5,636)

6,098

(1) Revenue was $7,152 prior to negative adjustments of $2,965 relating
to declines in metal prices affecting final payment for concentrates.

The net loss during the quarter resulted from decreased revenue from
mine production, which was primarily attributable to the significant
decline in silver prices and a negative revenue adjustment of
approximately $3 million upon final settlement of sales of concentrate
delivered at higher prices prior to the second quarter. The Company
does not anticipate adjustments of similar magnitude in future periods,
assuming that the price of silver stabilizes. Revenues were
additionally affected by lower production tonnage and grades during the
quarter as the Company undertook necessary development into
higher-grade mantos.

Exploration expenses during the quarter totaled approximately $1.4
million, $1 million of which was spent on 5,500 metres of diamond
drilling at La Platosa early in the second quarter. Due to current
silver prices and market conditions, the Company has suspended drilling
at La Platosa, though drill rigs remain on site and available to resume
drilling when market conditions improve.

Other expenses include an unrealized loss on marketable securities of
$1.2 million. The marketable securities are an investment in the Sprott
Physical Silver Trust, which represents an underlying investment in
134,732 ounces of silver. The decline in silver prices impacted the
fair value of these securities, which resulted in an unrealized loss
for the period.

Corporate administration expenses decreased by approximately $750,000 or
33% during the second quarter of 2013 relative to the same period in
2012. Further reductions in corporate administration, compensation and
other expenses of at least $1 million on an annual basis will be
realized in subsequent periods.

Cash cost per silver ounce net of by-products was $12.07 during the
quarter versus $6.96 in the first quarter of 2013 and $4.25 in the
second quarter of 2012. The increase in cash cost was primarily
attributable to the mining of lower-grade ore and lower tonnages
produced resulting in lower by-product credits per silver ounce, in
both cases related to the Company's focus on necessary development into
higher-grade mantos.

Mine production for the three and six months periods ended June 30, 2013
and 2012 was as follows:

** Q1 2013 data has been adjusted to reflect settlement with concentrate
purchaser.

(1)

Silver equivalent ounces established for each period using prices of
US$24 per oz Ag,
US$0.90 per lb Pb, and US$0.90 per lb Zn applied to the recovered metal
content
of the concentrates.

(2)

Average realized price is calculated on current period sale deliveries
and does not
include prior period provisional adjustments in the period. A complete
reconciliation
of net realized prices is set out in the Company's Q2 2013 MD&A.

Note: "t"= tonne; "T"= ton

Outlook

As a result of the lower than expected production achieved during the
first six months of 2013 due to significant mine development, the
Company expects to be below its previously announced target of
approximately 1.5 million ounces of silver, 9.6 million pounds of lead
and 13.0 million pounds of zinc. Improving silver grades during July
and August production-to-date are an encouraging sign that the
Company's development and mine optimization initiatives will be
reflected in future quarters. Therefore, production is expected to be
more closely aligned with original 2013 production guidance during the
third and fourth quarters.

The Company expects cash costs to decrease for the remainder of the year
as higher ore grade areas are accessed and focus is reshifted from mine
development to cost reduction and efficiency. The Company has already
implemented a number of changes given the significant reduction in
commodity prices experienced this year and will continue to monitor
these items going forward. Capital expenditures and mine planning are
currently being reviewed to ensure that they are optimized for current
market conditions. Exploration drilling in Mexico will remain suspended
to improve net cash flows at current commodity prices. The Company
continues to focus on increasing production to maximize operating cash
flow.

About Excellon

Excellon's 100%-owned La Platosa Mine in Durango is Mexico's highest
grade silver mine, with lead and zinc by-products making it one of the
lowest cash cost silver mines in the country. The Company is
positioning itself to capitalize on undervalued projects by focusing on
increasing La Platosa's profitable silver production and near-term
mineable resources.

The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of this
Press Release, which has been prepared by management. This press
release contains forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 27E of the Exchange Act.
Such statements include, without limitation, statements regarding the
future results of operations, performance and achievements of the
Company, including potential property acquisitions, the timing,
content, cost and results of proposed work programs, the discovery and
delineation of mineral deposits/resources/reserves, geological
interpretations, proposed production rates, potential mineral recovery
processes and rates, business and financing plans, business trends and
future operating revenues. Although the Company believes that such
statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Forward-looking statements are
typically identified by words such as: believe, expect, anticipate,
intend, estimate, postulate and similar expressions, or are those,
which, by their nature, refer to future events. The Company cautions
investors that any forward-looking statements by the Company are not
guarantees of future results or performance, and that actual results
may differ materially from those in forward looking statements as a
result of various factors, including, but not limited to, variations in
the nature, quality and quantity of any mineral deposits that may be
located, significant downward variations in the market price of any
minerals produced [particularly silver], the Company's inability to
obtain any necessary permits, consents or authorizations required for
its activities, to produce minerals from its properties successfully or
profitably, to continue its projected growth, to raise the necessary
capital or to be fully able to implement its business strategies. All
of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the
technical reports filed with respect to the Company's mineral
properties, and particularly the November 22, 2011 NI 43-101-compliant
technical report prepared by Roscoe Postle Associates Inc. with respect
to the Platosa Property. This press release is not, and is not to be
construed in any way as, an offer to buy or sell securities in the
United States.